US$1m Credit Facility and US$1.15m Issue of Equity (4376O)
19 Setembro 2011 - 4:18AM
UK Regulatory
TIDMADID TIDMADIS
RNS Number : 4376O
Armor Designs, Inc.
19 September 2011
Press Release 19 September 2011
Armor Designs Inc.
("Armor Designs" or "the Company" or "ADI")
US$1 million Domestic Inventory Credit Facility
With A Conditional US$1.15 million Issue of Equity
Further to the announcement of 15 March 2011 Armor Designs Inc.,
(AIM: ADID, ADIS), the knowledge-based designer, developer and
manufacturer of next generation composite protective products, is
pleased to announce that GBC International Bank ("GBCIB") has,
extended to ADI, a US$1 million credit facility in the form of a
"transaction specific" domestic inventory and working capital term
loan (the "Facility").
The Facility is to be used for the fulfillment of domestic
purchase orders and for domestic accounts receivables. GBCIB is a
an international trade bank, located in Monterey Park, California,
and is a "Preferred Lender" for the U.S. Small Business
Administration ("SBA") and ranks fifth in the U.S.A. as a
"Delegated Authority Lender" for the U.S. Export Import Bank
("EXIM").
On 15 March 2011 ADI announced that GBCIB had issued ADI with a
"transaction specific" international purchase order line of credit
to be used in fulfillment of international purchase orders and
international accounts receivables. The announcement also made
reference to ongoing discussions with GBCIB for a domestic
inventory credit facility. Today's announcement confirms that both
credit facilities are now in place and operational.
Under the terms of the Facility Armor Designs is extended a
five-year US$1 million term loan. The type and purpose of the
Facility is a "transaction specific" domestic inventory and working
capital term loan. The US$1 million government-backed loan
guarantees will be provided by the SBA, but future loan guarantees
may also come from the EXIM loan guarantee program, depending on
the type of "transaction".
Other conditions of the Facility are an advance rate of 100% for
domestic inventory raw material acquisitions and a requirement of
an additional infusion of a minimum of US$1 million equity capital,
to be used to support future transaction overhead requirements.
Advances on the term loan will bear interest at a fixed rate of
7.5%. During the first six months the loan will be interest only
and after six months the loan will be principle and interest. As a
form of collateral, GBCIB and the SBA/EXIM government agencies
require a first security interest in the assets of ADI. In
addition, GBCIB and SBA require ADI and Hawthorne & York
International, Ltd. (parent company of ADI) to be corporate
guarantors. The loan will have typical SBA loan fees, reporting
requirements, audit requirements, and other standard banking
requirements that are common in the industry and common for all
SBA/EXIM guaranteed loan programs. In fulfillment of the condition
to infuse additional equity capital to support future transaction
overhead requirements, ADI is pleased to announce that it has today
closed a fundraising by which the Company has raised US$1.15
million, before expenses, through a placing with investors of
76,667 new common stock shares of US$0.001 each in the Company
("Placing Shares"). The closing has been completed at a price of
US$15 per Placing Share (the "Placing Price"). As part of the
closing the Company has agreed with the investor that in the event
the Company issues any shares in the capital of the Company as part
of a further fundraising at a price less than the Placing Price
(the "Lower Price") prior to 31 December 2017, the investor will
have an option to subscribe at par (being US$0.001 per share), for
such a number of additional shares as they would had received had
the subscription price per share at Closing been at a 75% discount
to the Lower Price rather than the Placing Price.
James A. St. Ville, CEO, commented "Signing of the domestic
inventory facility, along with the previously announced
international purchase order line of credit, allows ADI to commence
fulfillment of both types of sales orders and to expand its
domestic and worldwide presence."
Application will be made for the Placing Shares to be admitted
to trading on the London Stock Exchange's AIM market. Dealings in
the Placing Shares are expected to commence on AIM on 30 September
2011.
Following this admission the Company's share capital and Total
Voting Rights comprises 27,131,803 Ordinary Shares of US$0.001each.
Consequently, 27,131,803 is the figure which may be used by
shareholders as the denominator for the calculation by which they
will determine if they are required to notify their interest in, or
a change to their interest in, Armor under the FSA's Disclosure and
Transparency Rules.
For further information please contact:
Armor Designs, Inc.
James A. St. Ville, President, CEO,COB Tel: +1 602 275 4633
james.st.ville@armordesigns.com www.armordesigns.com
Shore Capital and Corporate Ltd.
Anita Ghanekar
Edward Mansfield Tel: +442074084090
Notes to editors
GBCIB is a "Preferred Lender" of the SBA for both their Export
Express Program and the Export Working Capital Program. As a result
of the passing of the $30,000,000,000 USD Small Business Job Act,
GBCIB is now approved to extend their SBA working capital loans up
to a limit of $5,000,000 USD per borrower. In addition, as a
"Delegated Authority Lender" of the EXIM bank, GBCIB has been
granted authority to approve its EXIM loan guarantees up to a limit
of $5 million per transaction. With the designations, of "Preferred
Lender" and "Delegated Authority Lender", GBCIB is enabled to
approve, activate, and increase lines of credit in a more
expeditious manner to further support U.S. exports.
Armor Designs, Inc. ("ADI") is a knowledge-based company
specializing in next-generation composite material design,
manufacture, prototyping and testing for applications and products
for the armor industry. ADI uses a proprietary design and
manufacturing process called VCM to rapidly develop new composite
armor products of superior ballistic, weight and flexibility. The
VCM process is protected by patents and trade secrets licensed to
ADI in perpetuity for use in field of armor.
For more information on Armor Designs, Inc., please go to
www.armordesigns.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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